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Address by Minister Baird to the International Institute for Strategic Studies

Address by Minister Baird to the International Institute for Strategic Studies

August 3, 2014 - Singapore

Check Against Delivery

Good morning, and thank you for that kind introduction. It’s great to be here at the IISS [International Institute for Strategic Studies] with such a distinguished audience.

I’d like to thank all of you for deciding to start your no doubt busy week by listening to me tell you about how great my country is, and how much I know about Asia.

Does that kind of speech sound familiar? I can’t promise that I won’t do those things, but I did want to take this opportunity to reflect on where I see this region going, and how Canada can and will play a part in that journey.

It’s a good time for me to do so. I’m in the middle of a journey of my own: a two- to three-week tour of East and Southeast Asia.

I’ll be referencing “Asia” a lot in this speech but I’m mostly referring to the Asia-Pacific region, given the focus of my trip.

A trip of this scale gives me the opportunity to visit a few of the big partners at the same time—as well as Singapore, I’ve been to Beijing and Tokyo, and I’ll be going to Jakarta, Hong Kong and Guangzhou.

But I have also had time to get out to some of the newer, less traditional partners.

I made the first visit of a Canadian Foreign Minister to Mongolia, and the first ministerial visit to the young country of Timor-Leste. I will conclude by attending a dialogue with ASEAN as part of my second visit to Burma.

More seriously, I learn primarily through talking to people. During these travels I have listened to and learned from fellow foreign ministers, business leaders, community leaders, security experts, activists and expats.

From these conversations it’s become very clear to me that Canada and Asian nations have more common interests—and collective needs—than ever before.

And that is my message today.

Canada is well placed in the Asia-Pacific. We have strong common interests.

But in an increasingly unstable world, we also have a collective need, not just a desire, to work together.

Canada as a Pacific nation

Let me say at the outset that I am optimistic about the future for Canada and Asia—not just because of specific policies and priorities, but because of our very nature.

Those who know Canada will know that we are, unequivocally, a Pacific nation.

Asia has been, and remains, an important part of Canada’s nation building. We have welcomed large waves of refugees from Korea, Vietnam, Laos and Cambodia who were displaced by war.

When Hong Kong was reverting to mainland rule, large numbers of residents found new homes in Canada. More recently, we welcomed large numbers from India, Pakistan, Sri Lanka and the Philippines.

And we remain open to immigration from Asia today.

Some 60 percent of all new immigration to Canada continues to originate in Asia. It’s a higher number for foreign students, at almost 70 percent. And it is our fastest growing region for tourist arrivals.

Our Asian-Canadian demographics are central to our core identity. They are part and parcel of the basic fabric of our society. And they are one of our greatest strengths as we commit to deepening partnerships in the Asian region.

In fact, in demographic terms, you could say that Canada is as much an Asian country as is Singapore—5 million Canadians claim Asian origin—and that’s the same size as the entire population here.

You could also say that we have the most Asian major city outside of Asia. Almost half—43 percent—of all residents of Vancouver have Asian heritage. Even in Toronto, our biggest city, that figure is over a third.

These are not just numbers. They make a real difference.

The cultural understanding, family links, business ties and language skills of Canadians of Asian heritage are the rivets and buttresses of the Pacific bridge.

To anyone who says that Canada’s geography is a barrier rather than a bridge to deepened relations with Asia, I would point out that Shanghai is closer to the coast of British Columbia than it is to Sydney.

A flight from Vancouver to Beijing is also shorter than one from Sydney. The same is true for Tokyo and Seoul.

Modern connections with Asia and Singapore

For these and many other reasons, Canada already has a deep and growing presence in Asia. Today, Canada’s diplomatic network in Asia is stronger than in any other region. And it is growing.

In the days ahead, I will open our new embassy in Yangon, with more expansion planned elsewhere.

Our first Trade Commissioner abroad was dispatched to the region more than 100 years ago. Some of our great corporations have roots in Asia of more than a century.

I am very aware that for much of humanity’s existence, Asia has been at its centre—Asia as a leader in commerce, governance, science, literature and the arts.

Whenever there is spare time in my schedule, I always make a point of going to at least one cultural or historical site per visit, and I’ve come to develop a real appreciation for Asian art in particular.

Last week in Beijing, I toured some of the museums in the Forbidden City, looking at ceramics that were many centuries old—yet still relatively modern in the context of its ancient civilization.

But what’s changed in the 21stcentury, compared to the 16thand earlier, is that we are no longer a planet of largely disconnected regions.

We are now an interconnected and interdependent global society, a single pan-regional marketplace that never sleeps, and a marketplace of goods and services, but also of information and ideas.

The world of tall ships, feudal courts, distant frontiers and the occasional marauding army has given way to instant communications, global brands and multinational companies.

In this hyper-connected world, a prosperous Asia means a more prosperous world. What happens in Asia is now instantly felt across the globe.

That means we not only have a stake in Asia’s prosperity, but also in its peace and security, and in its governance.

Given Canada’s open economy and trade dependence—among the highest in the G-7 with some 60 percent of GDP and one in five jobs tied to exports—this is no small matter to Canadians.

We have learned that countries don’t prosper by accident.

Those who capitalize on global opportunities do so through sound policies, political leadership, international strategies and informed populations.

Canada’s traditional trading patterns have naturally involved the United States and Europe. We now know that we must diversify our economic relationships.

And we know that trading relationships don’t happen in isolation from political and security engagement.

We can look to our friendship with Singapore as the benchmark for this level of engagement. In 2015 we will celebrate 50 years of diplomatic relations between our nations.

Singapore is home to thousands of Canadians—a magnet for over $2 billion in Canadian direct investment and a key ally on regional security.

Canada, too, is a key gateway to North America for Singapore. Many of Singapore’s economic and government leaders have studied there. And it invests more in Canada than any other Southeast Asian nation.

I’m looking forward to meeting my counterpart later today to discuss how we can maintain this momentum.

Trading with a changing Asia

I believe that what Canada has to offer meshes neatly with the changing needs of transformed Asian societies.

And modernizing economies means a demand for secure supplies of high-quality raw materials.

Canada is a world leader in each of these fields.

We have world-class companies that are keen to deepen partnerships in the region. We also have smaller, innovative, and rapidly growing firms that are ready to get started.

In turn, as Asian firms are expanding their global reach, our doors are open to Asian direct investment in Canada in these and other sectors. And you’ll find that we have one of the most business-friendly economies in the world by any objective measure.

Our growing trade in China—across ASEAN, and with other major Asian markets—is a testament to this synergy. China has now become our second-largest trading partner after the United States.

My colleague, Minister of International Trade Ed Fast, just announced another four trade offices there, increasing our network of diplomatic and trade offices to 15 and our team of Trade Commissioners to 100.

Canada is, of course, engaged with the Trans-Pacific Partnership negotiations. At the same time, we have just completed negotiations for a free trade agreement with Korea, and are actively negotiating others, including with Japan and India.

We have the unique advantage of not only being a bridge from Asia to North America under NAFTA, but now also to Europe with the recent agreement in principle on a huge Canada-EU Comprehensive Economic and Trade Agreement.

We also know, however, that we can’t afford to be simplistic about Asia.

We know that the process of modernization and development has been uneven in the region. Some Asian nations are being left behind. And progress in some cases remains fragile.

Canada is stepping up its development support in several countries to address these outstanding challenges. We are building on development assistance to Asia over six decades, with current contributions totalling $1 billion every year.

Global instability

So I think we’ve established the reasons for increasing trade and development in Canada and Asia: our closeness geographically, historically, demographically and economically.

But I believe the collective need for this engagement comes from external reasons just as much as internal.

In the coming years it will be a constant challenge for Asia to keep its balance in an increasingly unstable world.

I won’t go through all of the global trends and crises, which an audience of this quality is more than familiar with, but I think it is becoming a fact of life.

When we met last week, my Chinese counterpart said he believed the world is now systemically unstable—and he was quoting from our former British counterpart William Hague.

An inordinate number of column inches and web pixels have been dedicated to the rise of Asian economies, and the world’s increasing dependence on them.

What I don’t think we hear enough about is the growing dependence, even vulnerability, that this creates for those Asian nations too.

I began this speech by showing off about how much time I’ve spent in Southeast Asia in recent years. But I have to admit that there is another region that has as many plane tickets with my name on it: the Middle East.

It is a priority for obvious reasons. In this hyper-connected world, instability in places like Iraq and Syria can have a direct impact on the stability of places like Indonesia and Singapore.

For example, when ISIS began to roll across Iraq, oil prices surged and Asian stock prices fell. So just as transforming Asian nations have evolving economic needs, I believe they have evolving diplomatic needs too.

Growing economies and stature on the world stage should bring with it growing responsibilities beyond domestic and regional borders.

This is already happening to some extent. In my bilateral meetings last week in China and Japan, we spent as much time talking about global issues like Ukraine and Gaza as we did about bilateral issues.

Canada is an outward-facing, open trading nation. We have a long-standing interest, and yes sensitivity, to global issues.

But if that is a problem, we are also a major part of the solution.

I believe there are three strategic areas in which Canada can make a meaningful contribution to stability in Asia: governance, energy security, and security cooperation.

Stable, democratic governance

Let me start with governance and democratic development.

“Stability” has in the past been a watchword for autocrats who seek to justify their top-down control.

But we know that this is a superficial stability, certainly in the medium to long term. My friend the foreign policy commentator Ian Bremmer, describes this well with the “J-curve” concept that the most stable countries are those that are open and democratic.

I have to say, after the seemingly inevitable march of democracy in the later decades of the last century, it often feels like progress has stalled over the past decade.

Fortunately, some of the great democracy success stories of the last generation are found right here in Asia: Korea, Japan, Indonesia and Mongolia.

I am optimistic about a fresh era in Indonesia following its historic elections last month.

This hasn’t been made public yet, but I’ll actually be meeting with president-elect Joko Widodo this evening. So I’m very much looking forward to that.

India’s recent election was also breath-taking in its sheer size, scope and complexity.

But there are clearly also continuing challenges in the region. In some cases, democratic practices are sliding backwards and reforms are stalling.

Vietnam’s restrictions on bloggers. Thailand’s military coup. Sri Lanka’s oppression of its Tamil minority. Pakistan’s vibrant civil society under assault by extremists, sometimes with the support of deep state actors.

And probably worst of all, North Korea’s insistence on remaining in its democratic and moral darkness.

This darkness is quite literal too—if you look at night-time satellite images of the region, there is a North Korea-shaped black hole next to the bright lights of South Korea and other neighbours.

We, of course, need to understand that democratic development takes time. Cultivating a culture of democracy involves entire societies, the old and the young, the rich and the poor.

And we need to engage and support societies as a whole—governments and civil society alike.

To avoid doing so risks nations being held back—both individually and the region as a whole.

Societies that fail to develop democratic checks and balances, transparency and accountability, and freedom of expression, contribute to instability and risks of conflict.

Just look at Russia.

The decline of the Russian Federation’s democratic space in recent years has contributed to a leader who is increasingly insulated from reality, and isolated from his own people.

This has resulted in an aggressive foreign policy, reckless actions, delusional justifications, and an economy in a tailspin.

Russian’s illegal annexation of Crimea was a reversion to 19th-century practices. And its dangerous provocations in eastern Ukraine resulted in the shocking downing of Malaysia Airlines flight MH17.

Successful and enduring societies of the 21st century are not built on strongmen and secrecy. They are rooted in democratic norms and standards, independent institutions, the rule of law and accountable, representative governments.

Democracy is not just about elections. And democracy takes work—from those governing as well as from the governed. It is a journey, not a destination.

Canada is committed to working together with our Asian friends and partners to ensure that this region continues to move forward as a region of democracies. The people of Asia, and the world as a whole, will benefit.

Energy security

The second strategic area I would highlight is energy security.

The IEA [International Energy Agency] projects that most energy demand growth will take place in Asia, with China and India alone accounting for half of that demand expansion.

In a time of global concern about risks in energy supply, the world is looking to Canada as a stable, reliable, resource-rich partner.

We have been blessed with enough resources to become an energy superpower.

Canada has thethird-largest proven oil reserves. We are already the fifth-largest crude oil producer and the fifth-largest natural gas producer. We are the second-largest uranium producer and exporter, and a major producer of renewable and clean energy sources.

Not to mention our stable economy, society and democracy.

Secure energy supplies are key to sustained and predictable economic growth in this region, at a time when current sources are predominantly in the volatile Middle East, North Africa and Russia.

This coincides with increased energy self-sufficiency in the United States, Canada’s primary destination for current oil and gas exports.

So there is a natural and mutually beneficial potential to significantly deepening the Canada-Asia energy partnership.

Asia needs more energy—reliable energy. Canada is a natural supplier.

But we have work to do. Canada is committed to expanding our infrastructure to bring our energy to tidewater.

Energy has the potential to transform Canada-Asia relations. It is up to all parties to make that happen. It is in our collective interests to do so.

Security cooperation

Third, and not entirely unrelated to energy security, is the need for security cooperation.

The number of security fault lines and trip wires in Asia are multiplying. They are also becoming more dangerous and unpredictable.

It’s becoming widely recognized that more must be done through institutions in the region to deter, manage and respond to these security tensions.

The world’s prosperity now depends on stability in Asia at least as much as it does on a peaceful and responsibly governed Europe or North America.

The world’s most active shipping lanes are in Asia. Two-thirds of the world’s container traffic comes from here. It is difficult to overstate the importance of Asian seas to global prosperity.

We don’t choose sides in maritime boundary disputes. We even have a couple of our own, and we deal with these peacefully.

We do, however, call on nations in the region to refrain from provocative actions, to commit to peaceful solutions, and to strengthen the institutions and norms that can underpin regional stability.

The stakes are too high to fail.

Canada is prepared to do its part to help strengthen peace, security and stability in Asia. And we are well positioned to do so.

We are a founding member of regional institutions, such as APEC and the ASEAN Regional Forum.

Canada has a long and proud tradition of involvement in Asian security.

Whether serving in India, Burma and Hong Kong during WWII, or in the more than 60 missions in the region since 1947—including, of course, the Korean War, and most recently in Afghanistan.

We have stood with our allies and friends in Asia. And we are not turning our backs on Asian security now, nor will we in the future.

I believe that Canada can continue to make a difference in areas of defence and security of priority to the region, and where Canada can really add value—not just maritime security, but in areas like cyber security, military medicine, and counterterrorism capacity building.

A key vehicle for our support is ASEAN. We see ASEAN as a vitally important institution in the region, and welcome its work with China toward establishing a code of conduct for the South China Sea. We urge all countries in the region to embrace such a code.

While in Jakarta tomorrow, I will meet with ASEAN’s Secretary General, Le Luong Minh.

And I can announce today that Canada is committing additional funds—building on the $30 million I announced last year in Brunei—to enhance security cooperation in ASEAN. This funding will help tackle non-traditional security threats such as trafficking and radicalization.

Canada also believes that the East Asia Summit has the potential to evolve into an organization that can play a more consequential role in addressing the complex challenges—economic, socio-cultural, security—that Asia and Canada face together.

We have already signalled our willingness to join the East Asia Summit as soon as it is ready to expand its membership. And we are encouraged by the strong support that Canada’s candidacy has received from across the region.

Conclusion

If we get them right, increased democratic development, energy security, and security cooperation can be pillars of stability in this region.

A secure, stable world is something we should all care about as a value in itself, but seeking it isn’t just about liberal internationalism or being an altruistic global citizen.

The cold hard economic facts demand it too. Prosperity is inextricable from stability and security.

You can’t maximize the potential of a country when its people’s needs are not being satisfied by responsible, responsive governance.

You can’t have a free flow of crucial resources like LNG [liquefied natural gas] when a key maritime area like the South China Sea is bubbling with tensions.

You can’t have a sustainable reliance on certain Middle Eastern sources when a clerical regime in Iran threatens to start a nuclear arms race.

You can’t have open trade when it is necessary to take actions like sanctioning Russia over its provocations in Ukraine.

And frankly, you can’t have a prosperous air industry bringing the world together when planes are being shot out of the sky.

As I conclude, I’d like to reaffirm that on all of the themes I have discussed this morning, Canada’s engagement is particularly strong with Singapore.

This strength comes from the bonds of common values, joint interests and a mutual and enduring commitment to work together in advancing them.